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ELRCDismissedCause No. 929 of 2013 (Statement of Claim filed 14th June 2013)· [2018] KEELRC 2471 (KLR)

Yovinalis Achoki & 2 others v Air Kenya Limited [2018] KEELRC 2471 (KLR)

Employment and Labour Relations Court
9 February 2018
LNLinnet NdoloMOMaureen Onyango
1,134 words in judgment
View original judgmentRead on Kenya Law Watch case
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·~5 min to read original · ~4 min brief

The bottom line

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Kenya's Employment Court confirmed employers don't have to explain why a fixed-term contract wasn't renewed, and dismissed the employees' claims.

What this practically means

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Executive summary

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Three former employees of Airkenya Express Limited claimed compensation for unlawful termination and various terminal dues, alleging their employment was ended on 3rd May 2012 because of their membership in the Aviation and Allied Workers Union. The Respondent denied unlawful termination, asserting the Claimants were on fixed term contracts issued on 1st May 2006 and renewed on 1st May 2009, which it declined to renew by notice dated 28th March 2012, and that all terminal dues were computed and offered but declined. The 3rd Claimant died during the cause and was substituted by his estate's representative. The Court framed two issues: whether unlawful termination was established and whether remedies were due. Relying on Teresa Carlo Omondi v Transparency International-Kenya and the Court of Appeal's decision in Oshwal Academy v Indu Vishwanath, the Court held that fixed term contracts confer no rights or expectations beyond their expiry date, that any legitimate expectation of renewal must be proved by the employee, and that an employer need not justify non-renewal. Since the expiry dates were clear and notice of non-renewal was given, the Respondent discharged its obligations; the unfair termination claim failed. The terminal dues claims likewise failed for want of evidence, the Court finding the Claimants had declined tabulated dues under a mistaken belief of greater entitlement. The entire suit was dismissed. In light of the 3rd Claimant's death, the Court declined to burden his estate with costs and directed each party to bear its own costs.

Key legal issues

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01

Whether non-renewal of fixed term contracts amounted to unlawful termination

Holding

Not unlawful - the contracts expired on their stated date after due notice of non-renewal; the employer owed no explanation for non-renewal

Reasoning

The Claimants served full three-year terms issued in 2006 and renewed in 2009. The expiry dates were clear and the Respondent gave written notice on 28th March 2012 that contracts would not be renewed. Applying the settled principle that fixed term contracts end at expiry, and the Court of Appeal's affirmation that no reasons for non-renewal need be given, the Respondent fully discharged its obligations.

p. 4
02

Whether the Claimants were entitled to the terminal dues claimed

Holding

The claims failed for lack of evidence; the Respondent had tabulated the dues but the Claimants declined them

Reasoning

The Respondent tabulated the Claimants' final dues, which the Claimants refused under a mistaken belief of entitlement to more. No evidence was led to substantiate the claims for salary, leave pay, allowances or service gratuity, so those claims failed and the entire suit was dismissed.

p. 4

Legal principles established

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  • Fixed term contracts do not carry rights, obligations or expectations beyond their expiry date; any legitimate expectation of renewal must be proved by the employee
  • An employer has no obligation to give reasons for non-renewal of an employment contract

Court orders

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  1. 1.The Claimants' entire claims are dismissed
  2. 2.Each party to bear their own costs

Authorities

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Cases cited (2)

  • Teresa Carlo Omondi v Transparency International-Kenya
    [2017] eKLR
  • Oshwal Academy (Nairobi) & another v Indu Vishwanath
    [2015] eKLR
Jurisdiction invoked
Employment and Labour Relations Court jurisdiction under the Employment and Labour Relations Court Act (claim for unlawful termination and terminal dues)

Key timeline

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Practical implications

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Frequently asked questions

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Cite this brief

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Cite this brief

Caselaw, "Yovinalis Achoki & 2 others v Air Kenya Limited [2018] KEELRC 2471 (KLR)", Case Analysis (2018). Cause No. 929 of 2013 (Statement of Claim filed 14th June 2013). Source: https://new.kenyalaw.org/akn/ke/judgment/keelrc/2018/2471/eng@2018-02-09

Suggested citation format for research notes or client memos. Always verify the original judgment before relying on any point.